Jericho Oil Elects to Participate in Multiple STACK Wells
September 13 2018 - 7:30AM
Jericho Oil Corporation (“Jericho”) (TSX-V: JCO; OTC PINK: JROOF)
announces that its Oklahoma STACK Joint Venture (“STACK JV”) has
elected to participate in its second Meramec formation well, the
Valkyrie 6-19N-12W #1H, within its Blaine County STACK acreage
position. In addition to the Valkyrie, the STACK JV has also
elected to participate in two additional Osage formation wells to
be drilled by Exxon Mobil’s subsidiary XTO Energy and Alta Mesa
Resources in Major County.
The prolific nature of the STACK JV’s Major County acreage has
attracted increased investment from offset operators, including
Exxon Mobil, Chesapeake Energy, Sandridge Energy, Alta Mesa
Resources and multiple private equity-backed operators. The
Ula 1-31H 6X7, operated by XTO Energy, is located between the
Company’s contiguous Blaine and Major County acreage positions and
is XTO’s first operated horizontal well in Major County since the
STACK play was discovered, demonstrating the prolific nature of and
significant capital investment in the basin. The Hilltop 2009
1-19MH, operated by Alta Mesa Resources, represents their third
Osage well, following successful Osage tests elsewhere on their
Major County footprint.
The Valkyrie well (Meramec formation), located in Blaine County,
follows the STACK JV’s successful completion of the Wardroom
13-19N-13W #1H (announced March 2018). The Valkyrie well, in
addition to the Wardroom, is offset by one of the highest recorded
Meramec wells (IP per 1,000 ft) in the STACK: Staghorn Petroleum’s,
CrowsNest 8-19N-12W #1H well. The CrowsNest has cumulatively
produced nearly 90,000 barrels of oil over its first six months
with a projected internal rate of return greater than 100% at
current strip prices.
The STACK JV owns a 24% working interest in the Valkyrie and
approximately 1% working interest in each the Ula and Hilltop
wells. The STACK JV has identified over 150 gross unrisked
locations with potential internal rates of return greater than 50%
(assuming $65bbl / $3mcf and $5mm Completed Well Cost) across its
acreage demonstrating the tremendous value proposition for Jericho
shareholders.
Brian Williamson, CEO of Jericho Oil, stated “The Company
continues to deliver on its two-pronged strategy of delineating and
de-risking our STACK acreage for the Meramec and Osage formations,”
adding, “we are excited to see significant investments being made
by deep-pocketed offset operators looking to capture the inherent
value of the STACK-ed oil-pay formations in this world-class
basin. Whether through the continued harvesting of the STACK
assets or through other strategic avenues, the Company is excited
about the underlying strength of its assets and growth
prospects.”
About Jericho Oil Corporation Jericho Oil
(www.jerichooil.com) is focused on domestic, liquids-rich
unconventional resource plays, located primarily in the Anadarko
basin STACK Play of Oklahoma. Jericho’s primary business
objective is driving long-term shareholder value through the growth
of oil and gas production, cash flow and reserves. Jericho
has assembled an interest in 55,000 net acres across Oklahoma,
including an interest in ~16,000 net acres in the STACK Play.
Jericho owns a 26.5% interest in STACK JV.
Jericho’s current operations are focused on the oil-prone Meramec
and Osage formations in the STACK. The Jericho team applies
advanced engineering analyses and enhanced geological techniques to
under-developed resource areas. Based in Vancouver, British
Columbia, with operational headquarters in Tulsa, Oklahoma, Jericho
trades publicly on the TSX-Venture (JCO) and OTC (JROOF). Jericho
owns its net acre position in Oklahoma through, and participates in
the STACK JV through, one or more wholly owned subsidiaries.
Cautionary Note Regarding Forward-Looking Statements: This news
release includes certain "forward-looking statements" within the
meaning of the United States Private Securities Litigation Reform
Act of 1995 and Canadian securities laws. There can be no assurance
that such statements will prove to be accurate and actual results
and future events could differ materially from those anticipated in
such statements. Important factors that could cause actual events
and results to differ materially from Jericho's expectations
include risks related to the exploration stage of Jericho's
project; market fluctuations in prices for securities of
exploration stage companies; and uncertainties about the
availability of additional financing.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
CONTACTS:
Adam Rabiner,Director, Investor
Relations1.800.750.3520investorrelations@jerichooil.com
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